Bitcoin (BTC) is facing potential downward pressure, with analysts suggesting a dip toward $70,000 as the Cleveland Federal Reserve’s latest inflation nowcast indicates a rise in the April Consumer Price Index (CPI) to 3.56% year-over-year. This comes as the Fed’s rate-cut expectations cool, leading to concerns that a firmer inflation reading could deter speculative investments like Bitcoin. The market has also seen a slowdown in institutional buying, particularly from Strategy, which has paused its BTC purchases, further weakening support for the cryptocurrency.
The technical outlook for Bitcoin shows a rising wedge pattern on daily charts, typically signaling a bearish reversal. Analysts note that a breakdown below the wedge’s lower trendline could lead to a decline toward the $70,000 mark. Conversely, if Bitcoin manages to break above the wedge’s apex near $84,000, it could invalidate the bearish outlook and target the $90,000 to $95,000 range.
Market participants should monitor the upcoming CPI report on May 12 closely, as its implications for inflation and Fed policy could significantly impact Bitcoin’s price trajectory.
Source: cointelegraph.com